Research On The Motivation And Effect Of The Issuance Of GDR By CPIC Under The Shanghai-London Stock Connect Mechanism

The International exchanges and cooperation have been continuously enhanced with the development of economic globalization and trade liberalization and the flow of capital between countries has become more frequent and free With the great attention of the leaders of China and the UK and the strong support of the securities regulators of the two places,the SSE and the London Stock Exchange worked together to analyze and evaluate the feasibility of the Shanghai-London Stock Connect business,and made more detailed planning at the institutional level and business process level.In June 2019,the westbound business of "Shanghai-London Stock Connect" was officially opened,which includes westbound and eastbound business,each with its own operating rules,aiming to establish an efficient,reasonable and stable capital circulation channel,so that high-quality funds from both sides can flow more smoothly.CPIC’s GDR was successfully listed on the London Stock Exchange,becoming the first insurance company in history to be listed and traded on the three major stock exchanges of the Shanghai Stock Exchange,the Hong Kong Stock Exchange and the London Stock Exchange.Therefore,this thesis selects the event of CPIC’s issuance of GDR as the research object,and makes an in-depth and comprehensive analysis of the successful issuance of GDR by CPIC based on the explanation of relevant theories on the methods and motives of overseas listing.This thesis is a single case study,which summarizes the mainstream views of the research direction of the thesis by collecting and sorting out the motivation and performance of dual listing,the development status of depository receipts,and the Chinese and foreign literature related to Shanghai-London Stock Connect and GDR,which is used as the basis for research.This article sorts out the industries involved in the case company,CPIC,as well as the general summary and financial situation of the case company to increase our understanding of the case.At the same time,the main event of the article,the process,scheme and results of the GDR issuance of China Pacific Insurance-are sorted out to form a clear time context.After understanding the case incidents,through consulting public materials,we analyzed the conditions under which CPIC issued GDR and why they issued GDR,and deeply explored the reasons.Finally,a combination of qualitative and quantitative methods is used to analyze and evaluate the effect of the event.In the quantitative analysis,we start from the long-term and short-term performance,among which the short-term performance adopts the event research method,the long-term performance adopts the improved Du Pont analysis method,and the insurance industry-specific index evaluation method.After analyzing the issuance conditions and motivations,business performance and market performance of CPIC after its overseas listing,this thesis finds that CPIC has achieved positive performance in the future growth of the enterprise after its overseas listing,and has improved its profitability,equity structure,growth ability and corporate governance level.All this provides valuable inspiration and experience for more Chinese companies that choose to issue GDR on the London Stock Exchange.By analyzing the success of CPIC’s issuance of GDR,five enlightenment were obtained: first,before issuing GDR,it is necessary to have a clear and accurate understanding of relevant policies and regulations;The second is to comprehensively consider a variety of influencing factors to determine a suitable initial price;Third,it is necessary to widely solicit the opinions of shareholders and adopt necessary methods to protect the interests of investors;The fourth is to issue at a suitable time;Fifth,prudently select and introduce international strategic investors.